New Jersey economy continues to recover from pandemic downturn

Nearly 18 months after the coronavirus pandemic forced businesses to abruptly close and unemployment to skyrocket, New Jersey has regained all the private sector jobs it lost in March and April 2020.

new jersey Added 9,800 jobs The unemployment rate remained at 3.9% in June, the Labor Department said on Thursday. The national unemployment rate he is 3.6%.

A year ago, the unemployment rate in New Jersey was 7.1%.

The state has recovered the 702,000 private sector jobs lost early in the pandemic at a historically fast pace, economists say.

“A lot of jobs will come back during the summer, especially seasonal jobs and restaurants and businesses will be ready,” said Robert Scott, an economist at Monmouth University. , of course, one of the big questions is what kind of jobs are being filled.”

Charles Steindel, former chief economist at the New Jersey Department of Treasury, analyzed employment reports from the conservative think tank Garden State Initiative and found that while the New Jersey workforce continues to recover, it remains lackluster. said.

Despite increases over the past few months, the state’s total labor force is 38,500 below last June’s figure, Steindel said.

Economists can use the monthly jobs report as an economic indicator, but more recently it’s been an indicator of a potential recession, Scott said. Scott said he doesn’t see any serious red flags in this month’s jobs report, but that it would be a “hidden moment” if companies start laying off workers.

Goldman Sachs CEO David Solomon told CNN this week He thinks a recession is likely.Citigroup economists forecast 50% chance of economic downturnUBS puts the chance of a US recession at 40%.

State of New Jersey

New Jersey added five out of nine private sector jobs, according to the Labor Department. Most notably, 7,600 jobs were added last month in the leisure and hospitality industry, one of the industries hit hardest by the 2020 pandemic restrictions.

According to the report, 4,200 jobs were added in trade, transport and utilities, and 3,800 jobs were added in education and health services. Meanwhile, construction, financial activities, professional services and business services all recorded unemployment.

New Jersey’s public sector added just 200 jobs last month. Smith said the industry has taken longer to recover than the private sector, partly because he said it takes longer to hire jobs with more stable employment and benefits. Because it is possible.

Scott warned that he expects summer to hit a high point before a potential recession hits.

“This is the kind of rosy point you’re looking down from a cliff, are we about to fall? I’d say it’s very possible.” “This is the peak and unemployment will start rising again heading into the fall. I would be shocked if that didn’t happen.”

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